Russia Turns to AI to Boost Tax Collection
Artificial intelligence is helping Russian cities spot untaxed properties by cross-referencing aerial imagery with cadastral maps, tightening local budgets and reshaping how taxes are managed nationwide.
In Ulan-Ude, the capital of Buryatia, officials have deployed an AI-powered system to improve the collection of land and property taxes. By midyear, the technology had already helped the city treasury meet its revenue targets.
The platform works by comparing aerial photography with cadastral maps, automatically identifying parcels of land and buildings that were previously left off official records—and whose owners had not been paying taxes. Now, local authorities are encouraging property owners to start contributing, even at a minimal rate.
Taxation itself is undergoing broader digital reform across Russia. On September 1, the country launched an automated simplified taxation system for small businesses. The service collects and processes financial data in real time, giving entrepreneurs a single digital interface to manage obligations without the need for accountants. If successful, the pilot project could expand to cover the entire national tax system.
